The adage ‘Bad facts can create bad law’ applies to IRS penalties, where the agency typically removes penalties for most taxpayers with strong factual support at the administrative level. Court cases lacking strong facts often result in litigation, leading to numerous court cases where the government prevails. While it is uncommon for taxpayers to succeed…
Category: Reasonable Cause
Reasonable Cause
Taxpayers may avoid penalties and interest if they can demonstrate reasonable cause for their tax errors or omissions. We assist clients in demonstrating reasonable cause to the IRS. Give us a call to see how we can help, (713) 909-4906.
Missing Form 1099 May Establish Reasonable Cause
In general, if you do not receive a Form 1099 to report income to you and you omit it from your tax return, you may still be liable for penalties if the IRS later notices the issue and makes an adjustment. This is because taxpayers have a responsibility to report all their income, regardless of…